“Entrepreneurship is a way to find out whether you are a visionary or just hallucinating”
He has been listed by the San José Mercury News as one of the 10 influencers in Silicon Valley. Steve Blank is a very active retired serial entrepreneur who is now teaching entrepreneurship at multiple universities. He is also the author of the Customer Development model for early stage companies, which is adopted by more and more startups. He has kindly answered HitBarcelona questions.
- 21 years and 8 high technology companies: what is the most important lesson you have learned?
A startup is a transitory organization which exists to search for a scalable, repeatable and profitable business model. And that you need to test your hypotheses about your business model against the reality of customers and market. To do so founders need to recognize that there are no facts inside your building so they need to get outside.
- Once you said: “If you think entrepreneurship is about the money, become a VC”. What does entrepreneurship mean to you?
Entrepreneurship is a way for founders to bring their passion, vision, energy and dedication to life and to find out whether they were a visionary or just hallucinating.
- Eric Ries and you are the leading proponents of the “lean startup”. Do you still think it is the best way for entrepreneurial ventures to reduce failures rates and boost innovation?
Startups are trying to solve for two simultaneous unknowns; what are customer needs and what are the minimum product features. Customer Development and the Lean Startup are one set of methodologies to approach those problems.
- The “Customer Development” model is one of the core themes in your classes. Do entrepreneurs pay attention to this process?
Founders who are doing their first startup will ignore Customer Development. Those who have started a company and failed tend to appreciate the model.
- You have done several talks on The Secret Story of Silicon Valley. Why did entrepreneurship blossom there?
The serendipitous intersection of Fred Terman, Stanford’s Dean of Engineering with deep ties to the U.S. military and intelligence agencies + the Cold War and the United States’ need for advanced technology for electronic intelligence,+ an extremely liberal view of how startups and academics should work together, combined with the rise of Venture (risk) Capital.